Yspala granted 40,000 units options to its managers, subject to 3 years of service. The tax law in the case grants, on exercise, a deduction equal to the intrinsic value of the options, spread over the service period for the services received. At the reporting date, 2 years of service have been rendered and the intrinsic value is 12 per option; all beneficiaries are expected to stay. Tax rate: 25%. Future taxable profit is probable. Compute the deferred tax asset at the reporting date.
- Options granted
- 40,000
- Intrinsic value per option at the reporting date
- 12
- Years of service rendered
- 2
- Required service period (years)
- 3
- Tax rate (%)
- 25 %